Kandla Port's loss, Mundra's gain

In the last six years, Kandla Port Trust, one of the 12 major Indian port trusts, has seen a decline of around 14 percent in its container volumes, reported DNA.


While a minor port, Mundra, has seen an increase of around 18 times in container volumes. Kandla has been losing volumes owing to draft and tidal issues.


According to a Kotak research note, the Kandla Port Trust had a total market share of 4.3 percent in fiscal 2004, which has now dropped to 1.7 percent and Mundra port's market share has increased from 1.2 percent in fiscal 2004 to 10.5 percent in fiscal 2010.


In terms of volumes, Kandla's total container volumes handled has declined from 170,000 TEUs in fiscal 2004 to 146,000 TEUs in fiscal 2010, a decline of around 14 percent. During the same period, total volumes at Mundra port increased more than 18 times from 48,000 TEUs to 924,000 TEUs.


Officials from both the Kandla Port Trust and ABG Kandla Container Terminal agree that volumes have been lost to Mundra, as Kandla port faces issues due to a shallow draft and tidal seasonality.


"The port is losing volumes to Mundra, as Mundra allows for direct shipping against feeder shipping from Kandla. The draft and tide are the main issues," said an official from the Kandla Port Trust, on condition of anonymity.


Mundra Port has a draft of 12.5 to 17m.


Officially, Kandla is stated to have a draft of around 12.5m, but officials from ABG Kandla Container terminal, said the actual draft available has been about 11.6m. Officials from both companies are positive that the draft will improve to around 13m in the next couple of years.


"The port (Kandla) is excellent in terms of infrastructure. However, based on its location, tides and a lower draft are the two main issues. While, there are plans to increase the draft to 13m, it also needs to be maintained at that level. The draft is a big issue deterring mainline vessels from entering the port.
(Source:http://www.cargonewsasia.com)